Improving NHS financial management is a key priority for the Audit Commission; improving standards of financial management and financial reporting is the first of our strategic objectives.
So why is financial management so important? It is a core part of successful management. It is essential element of the corporate governance arrangements of an NHS body and is fundamental to achieving to the NHS body's objectives and improving its services. High performing organisations and those with a track record of improving services consistently demonstrate strengths in leadership, performance management and financial management.
Auditors have responsibilities in relation to financial management, which are set out in the Code of Audit Practice. There are a number of financial management audit tools that help auditors discharge their responsibilities in this area (for example, our use of resources work and specific risk-based audit tools). The health directorate financial management workstream supports auditors in carrying out this work as well as producing national reports, briefings and good practice case studies as well as managing relationships with organisations such as the HFMA, CIPFA, ACCA, Monitor and the NAO.
In these pages you will find links to the Audit Commission’s work on financial management in the NHS.